319 – CERB Transition to EI: What Does It Mean For Your Budget & Debt?

Oct 10, 2020

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The Canada Emergency Response Benefit (CERB) has now come to an end and is transitioning to four different financial aid programs: EI, CRB, CRSB, and CRCB. But what do these income supports mean for Canadians' household budgets and debt repayment? Will they be enough to help Canadians still battling the financial effects of COVID-19? And which individuals no longer qualify to receive federal help? On today's podcast, our guest is David Macdonald, Senior Economist at the Canadian Centre for Policy Alternatives (CCPA). David explains the financial impact of switching from CERB to these new aid programs. He walks us through how these programs work, eligibility, and whether Canadians who have returned to work at reduced hours can still get help. He also shares his thoughts on the long-term implications of these supports for the Canadian economy. Tune in to this important discussion with Doug Hoyes.

We also encourage you to check the Government of Canada website for up-to-date information as these programs may evolve: https://www.canada.ca/en/department-finance/economic-response-plan.html#individuals

Additional Links:

David Macdonald on Twitter: https://twitter.com/DavidMacCdn

CCPA Report – 1.8 Million Canadians Better Off with a Higher EI and CRB Floor: https://behindthenumbers.ca/2020/09/28/1-8-million-canadians-better-off-with-a-higher-ei-and-crb-floor/

Canadian Centre for Policy Alternatives: https://www.policyalternatives.ca/

David Macdonald's first appearance on Debt Free in 30 – ep. 114: Basic Income: Is It a Silver Bullet for Poverty? https://www.hoyes.com/blog/basic-income-is-it-a-silver-bullet-for-poverty/ and on YouTube (audio only): https://youtu.be/mi3tWjg1bC4

Our podcast on Modern Monetary Theory https://youtu.be/TMGDaTGx3V4

Hoyes Michalos Bankruptcy Study: https://www.hoyes.com/press/joe-debtor/

Time Stamps:

2:22 CERB – How it worked, qualification requirements

5:44 The new Employment Insurance, how it works, who qualifies

8:32 How taxes work for CERB and EI

9:44 Why a lot of Canadians may have a big tax bill in the spring of 2021

12:15 Is it possible that CRA creates special rules to mitigate the big tax bill many Canadians will face in 2021?

17:00 CRB (Canada Recovery Benefit) – what it is, who qualifies

21:00 CRSB (Canada Recovery Sickness Benefit) – what it is, who qualifies

22:30 CRCB (Canada Recovery Caregiving Benefit) – what it is, who qualifies

24:30 What if I'm only working one day per week? How does that impact my benefits?

27:50 Who qualified for CERB, but now won't receive any income support?

30:25 What are some of the shortcomings in the current programs you would like to see addressed?

33:30 Are we moving towards a Basic Income?

37:00 These programs are very expensive; how will we pay for them?